Health Savings Account

Health Savings Account (HSA)

To implement an HSA, Use a Payroll Deduction:

Create the Deduction and optionally, select a new HSA Liability account. (Using the Default Withholding account is acceptable.)

Assign this Deduction to the employees.

Click on the Exempt button to indicate the appropriate Exemptions

Process Payroll. When the payroll process is complete, there will be an HSA liability to pay (Pay Liabilities button in Payroll). Click on Pay Liabilities, and place a check mark to pay the HSA liability. Make the check payable to the company managing the HSA. Print check. (If no check is needed, it can be marked as Already Printed, and a non-number identifier can be indicated in lieu of a check number.)